DENTSPLY International Inc. Reports Record Second Quarter 2002 Results and Increases 2002 Year-End Earnings Expectations.Business Editors YORK York, former name of Toronto, Canada York, Ont.: see Toronto, Ont., Canada. York, city, England York, city (1991 pop. 123,126) and district, North Yorkshire, N England, at the confluence of the Ouse and Foss rivers. , Pa.--(BUSINESS WIRE)--July 22, 2002 DENTSPLY International Inc.(NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :XRAY) today announced record second quarter sales and earnings. Sales increased 48.4% to $378.0 million in the second quarter of 2002, up from $254.6 million in the second quarter of 2001. The internal sales growth rate for the quarter was 8.3%, excluding a 38.4% increase due to acquisitions and a positive 1.7% foreign currency translation impact due to the weak U.S. Dollar. Net income for the second quarter of 2002 was $36.8 million; and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. earnings per common share was $0.46 an increase of 31.4%. DENTSPLY also announced that it is raising its expectations for 2002 for both internal sales growth and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of . The Company expects internal sales growth of 6.5 - 7.5% in 2002 up from an estimated 6.0 - 7.0%, and expects diluted earnings per share of $1.80 - $1.82, excluding the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). income reflected in the year-to-date earnings. The Company is increasing its earnings estimates, despite a decision to further expand its sales force by an additional 35 field sales representatives by 2002 year-end. The additional sales representatives are being added in key U.S. divisions with strong growth opportunities. John C. Miles II, Chairman and Chief Executive Officer, said "2002 continues to be a banner year for DENTSPLY. We are delighted to be able to further build investor confidence by increasing earnings expectations in such a volatile market environment. Our acquisitions are beginning to show their synergistic synergistic /syn·er·gis·tic/ (sin?er-jis´tik) 1. acting together. 2. enhancing the effect of another force or agent. syn·er·gis·tic adj. 1. strength, and our arsenal of new products continue to drive market share gains. The Company's strong earnings and our new products are providing us the opportunity to make increased investments in our sales force, which should allow us to accelerate our market share gains in 2003 and beyond." Sales for the first six months of 2002 were $729.2 million, an increase of 45.8%, this includes internal growth of 7.4% and acquisition growth of 38.4%. Net income in the first six months of 2002 was $69.9 million or $0.88 diluted earnings per share. The first six months included a $2.0 million or nearly $0.02 per share restructuring benefit. Excluding restructuring benefits in 2002 and the gain from the sale of SoftDent, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control and restructuring in the first half of 2001, net income in the first six months of 2002 was $68.6 million compared to $51.9 million and diluted earnings per common share were $0.86 in the first six months of 2002, an increase of 30.3% over $0.66 per share in the first six months of 2001. DENTSPLY Conference Call Information: DENTSPLY will hold a conference call on Tuesday, July 23, 2002 at 8:30 a.m. (TZ: Eastern). To access the call, please dial: domestic 888/273-9887 and international 612/332-0923. This conference call will be broadcast live on the Internet at www.dentsply.com. An audio replay of the conference call will be available for one week. To access the replay, please dial: domestic 800/475-6701 and international 320/365-3844. Access Code: 643306. DENTSPLY designs, develops, manufactures and markets a broad range of products for the dental market. The Company believes that it is the world's leading manufacturer and distributor of dental prosthetics pros·thet·ics n. The branch of medicine or surgery that deals with the production and application of artificial body parts. pros , precious metal dental alloys This is a list of alloys for which an article exists in Wikipedia (or is proposed but not yet written). They are grouped by base metal, in order of increasing atomic number. Within these headings they are in no particular order. , dental ceramics ceramics (sərăm`ĭks), materials made of nonmetallic minerals that have been permanently hardened by firing at a high temperature, or objects made of such materials. , endodontic Endodontic Pertaining to the inside structures of the tooth, including the dental pulp and tooth root, and the periapical tissue surrounding the root. Mentioned in: Root Canal Treatment endodontic instruments and materials, prophylaxis prophylaxis (prō'fĭlăk`sĭs), measures designed to prevent the occurrence of disease or its dissemination. Some examples of prophylaxis are immunization against serious diseases such as smallpox or diphtheria; quarantine to confine paste, dental sealants Dental sealants are a dental treatment consisting of applying a plastic material to one or more teeth, for the intended purpose of preventing dental caries (cavities) or other forms of tooth decay. , ultrasonic ultrasonic /ul·tra·son·ic/ (-son´ik) beyond the upper limit of perception by the human ear; relating to sound waves having a frequency of more than 20,000 Hz. ul·tra·son·ic adj. 1. scalers, dental injectible anesthetics Anesthetics Drugs or methodologies used to make a body area free of sensation or pain. Mentioned in: Appendectomy and crown and bridge materials; the leading United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. manufacturer and distributor of dental x-ray equipment, dental handpieces, intraoral cameras, dental x-ray film Noun 1. X-ray film - photographic film used to make X-ray pictures bitewing - a dental X-ray film that can be held in place by the teeth during radiography holders, film mounts and bone substitute/grafting materials; and a leading worldwide manufacturer or distributor of impression materials, orthodontic orthodontic (ôr´th  dän´tik),adj appliances, dental cutting instruments and dental implants dental implant n. An artificial tooth that is anchored in the gums or jawbone to replace a missing tooth. dental implant . The Company distributes its dental products in over 120 countries under some of the most well established brand names in the industry. DENTSPLY is committed to the development of innovative, high quality, cost-effective new products for the dental market. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding future events or the future financial performance of the Company. Actual events or results may differ materially from those in the projections or other forward-looking statements set forth herein as a result of certain risk factors. These risk factors include without limitation, the difficulty of successfully combining the operations of Degussa with those of DENTSPLY in a timely manner, the ability to continue to generate sufficient cash flow to pay down debt as planned, and changes in the general economic environment that could affect our business. For an additional description of risk factors, please refer to the Company's Annual Report or Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission.
DENTSPLY INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
-------------------- -------------------
2002 2001 2002 2001
-------- -------- -------- --------
NET SALES $377,978 $254,635 $729,196 $500,304
NET SALES - ex PM $332,523 $254,635 $634,761 $500,304
COST OF PRODUCTS SOLD 192,448 120,908 373,321 236,763
-------- -------- -------- --------
GROSS PROFIT 185,530 133,727 355,875 263,541
% OF NET SALES 49.1% 52.5% 48.8% 52.7%
% OF NET SALES - ex PM 55.8% 52.5% 56.1% 52.7%
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES 120,099 89,391 234,815 178,784
RESTRUCTURING COSTS
(INCOME) (44) 0 (2,001) 5,500
-------- -------- -------- --------
INCOME FROM OPERATIONS 65,475 44,336 123,061 79,257
% OF NET SALES 17.3% 17.4% 16.9% 15.8%
% OF NET SALES - ex PM 19.7% 17.4% 19.4% 15.8%
NET INTEREST AND
OTHER EXPENSE (INCOME) 9,691 3,168 17,061 (16,327)
-------- -------- -------- --------
PRE-TAX INCOME 55,784 41,168 106,000 95,584
INCOME TAXES 18,964 13,764 36,084 33,854
-------- -------- -------- --------
NET INCOME $ 36,820 $ 27,404 $ 69,916 $ 61,730
% OF NET SALES 9.7% 10.8% 9.6% 12.3%
% OF NET SALES - ex PM 11.1% 10.8% 11.0% 12.3%
EARNINGS PER SHARE-BASIC $ 0.47 $ 0.35 $ 0.90 $ 0.80
-DILUTIVE $ 0.46 $ 0.35 $ 0.88 $ 0.78
DIVIDENDS PER SHARE $0.04583 $0.04583 $0.09167 $0.09167
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING-BASIC 78,163 77,622 78,056 77,543
-DILUTIVE 80,076 78,928 79,858 78,707
DENTSPLY INTERNATIONAL INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS)
JUNE 30, 2002 DECEMBER 31, 2001
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 17,686 $ 33,710
ACCOUNTS AND NOTES
RECEIVABLE-TRADE, NET 221,316 191,534
INVENTORIES 222,911 197,454
OTHER CURRENT ASSETS 60,250 61,545
---------- ----------
TOTAL CURRENT ASSETS 522,163 484,243
PROPERTY,PLANT AND
EQUIPMENT, NET 286,730 240,890
OTHER NONCURRENT ASSETS,
NET 1,161,860 1,073,018
---------- ----------
TOTAL ASSETS $1,970,753 $1,798,151
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES $ 360,675 $ 358,517
LONG-TERM DEBT 786,179 723,524
OTHER LIABILITIES 89,007 106,154
MINORITY INTEREST IN
CONSOLIDATED SUBSIDIARIES 573 437
STOCKHOLDERS' EQUITY 734,319 609,519
---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,970,753 $1,798,151
========== ==========
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